Essay Example on Aviation Market in Birmingham: Challenges and Opportunities

What is the demand profile and competitive environment of the current aviation market to/from Birmingham?

The success of the economy of the United Kingdom depends on the significant global connectivity as they cannot delay these critical decisions. The goal of the flightpath5050 to enable ninety percent of the European passengers to accomplish their door to door travel in four hour time is such a challenging task.

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The critical goal of the dataset5050 focuses on delivering insights into both current and future processes related to the UK transport system. On this note, the current passenger demand profile majors on European aviation with particular objectives to create a range of profiles for passengers and their respective journeys' archetype (O'Connell and Connolly 2017). It is, therefore, fundamental to involve various characteristics illustrating the demand for mobility wholesomely and particularly in air transport. The data drive techniques thus focus o the current system of transportation and shall deliver the result for the developed models in UK aviation (Kroes &Savelberg 2019).

The travel behavior of passengers and their demands or preferences concerning vacations or holiday destinations travel budgets, and experiences can be influenced by factors like nationality, gender, age, level of education, or the communication and the use of information technologies.

The transport department believes in the privatization value in the economy of the UK and the creation of benefits overall; however, the responsibility that comes with it on the aviation strategy has made it take into account the impacts of liberalization on the market competition.

Initially, whether the growth of a single dominant carrier could affect the interest of the customer in future or not, the airways of Britain has always been a dominant carrier for far too long ad since the year 2002, other airlines have also developed a considerable market share in some of the largest airports like Ryanair which constitutes seventy-eight percent at Stansted and EasyJet, forty-two percent at Gatwick in 2016.

The government has also acknowledged the airline benefits, thus establishing larges operating fields to increase the economic scale that can help customers with lower fares, higher frequencies, and more destinations. Even though the government will now monitor the driving factor behind market performance to identify whether or not the existing regulation promotes effective competition. While the exchange of terminal air navigation services in the United Kingdom has been liberalized since 1985, the transformation of service providers at comprehensive airports such as Birmingham has only been witnessed in recent years.

However, it is recognized that the United Kingdom is the highest competitive environment in entire Europe and the DfT has asked the CAA to undertake a review of whether or not the sector is suitable for the recommendable level of market demands at relevant United Kingdom airports. Hence, the CCA sought to consult on the draft findings that a proper market environment usually exists (Ryerson 2018).

What are the key factors that have historically driven demand in this market?

The significant factors that have hitherto driven demands in the UK aviation market include the travel behavior of passengers and their demands or preferences concerning vacations or holiday destinations, travel budgets, and experiences can be influenced by factors like the nationality, gender, age, level of education, or the communication and the use of information technologies (Kroes and Savelberg 2019). The independencies among various factors, as presented in the chart below, also influence the market demand in UK aviation. For instance, communication technology and data usage in a journey might be related to the age of an individual. Therefore, for one to comprehend better the current behaviors of passengers and their demands towards the transport system of Europe, various factors must be involved in the analysis of both qualitative and quantitatively.

Factors behind Passengers demand the current UK Aviation

Source: Ryerson, M.S., and Kim, A.M., 2018. A drive for better air service: How air service imbalances across neighboring regions integrate air and highway demands. Transportation Research Part A: Policy and Practice, 114, pp.237-255. https://www.taylorfrancis.com/books/e/9781315566481/chapters/10.4324/9781315566481-15

Demographic Aspects

The size of the population influences the demand for air travel due to a vast demand basis, which automatically raises the need for mobility; therefore, a country's people should be considered when creating and distinguishing the demand for air travel (Camilleri et al. 2018).

Age

Previous researches and records have indicated that individuals aged between 25 to 44 are the most active when it comes to airstrips taken yearly, followed by those aged 45 to 64. In contrast, those aged 65 and above are less active. The relationship between travel demand and the age cohort has also been evaluated in various studies concerning UK aviation. However, the best review, which explains the various factors behind the needs for travel among older adults include higher disposable income, high life expectancy, or good health (Camilleri et al. 2018). However, the rate for a trip among the empty nesters is intrinsically higher compared to seniors.

Gender

Gender is a critical aspect of defining various passenger profiles. The female population share is about fifty percent in every UK state. The travel behavior also varies with gender; hence must be looked into carefully (Tretheway and Kincaid 2016). Moreover, a large share of demands for more female services like tour guides or transport for women alone. In previous years, the participation of the labor market of women and female education has gradually been on the rise. These factors led to financial stability on the side of women that enabled them to change their family structures. Several studies have indicated that the gender gap in behavior mobility has been reducing in the previous years particularly concerning automobility meaning, the number of licenses acquired and the regular trips made by cars and the kilometers driven in one year has offered women the capacity to compete men (Tretheway and 2016). A considerable number of women entering this workforce ha also led to a gradual increase in female business trips, and various kinds of holiday destination.

Socio-economic Aspects

The aspects of socio-economic constitute a significant driver of both future and current demands for air transport in the UK. The gross domestic product and the attractiveness of a nation concerning business transactions is an essential driver for air transport demands. Moreover, the contribution of the household leads to passengers' profile derivations because it can be differentiated, for instance, among singles and families traveling (Camilleri et al. 2018).

Household Structure

Various household distribution sizes indicate whether not there exists a massive share of single or group travelers or maybe families. In the UK, a household share sums up to more than forty percent of their total population (Camilleri et al. 2018). Hence, a large percentage of individuals may be traveling in groups or by themselves. It is significant to take into consideration the household size of a country when dealing with air traffic flows between particular regions as well as the prevalence capacity of a specific passenger group.

Level of Education

Tertiary education level varies significantly across the UK. Research by the GBTA (Global Business Travel Association) suggests that a larger share of air travelers own college education, about seventy-one percent. However, the type of employment and culture are not the only factors affecting business travel. A higher education level usually correlates with a high income level, thus a high propensity to utilize air transport or leisure (Camilleri et al. 2018).

Have traffic trends been consistent?

Aviation has, for far too long been the core of the economic success of the United Kingdom. It generates directly over eight point eight billion dollars of the economic output. From its early days, aviation has helped in charting the global trade links as well as establishing essential domestic connections allowing the UK to flourish. Currently, the UK has the most extensive aviation network entire Europe and, consequently, the 3rd largest across the globe. This industry generates twenty-two billion dollars to the economy of the UK, and over two hundred thousand jobs (Tretheway & Kincaid 2016).

What is the forecast for the future in the short, medium, and long term?

The forecast for the future in the short, medium and long term plan for UK aviation relies on its ability to connect to the rest of the world, chart new trade links for networking and market competition. A long term strategy is, therefore, necessary for sustainable growth to ensure the continued success of the industry. This is the starting point for UK aviation 2050. However, in any medium or format, under the government license terms or the department's forecasts are those long-term plans at the UK aviation used for various purposes such as alerting future aviation policy and strategy, making decisions on airport expansions and feeding other departments of the government and more massive aviation sector.

What are the opportunities, challenges, and threats to the market?

The quality and amount of indirect and direct air travel links available from a particular airport shall help in measuring air connectivity based on the demands of the consumers who want to fly to and from a given airport. Though, the combination of onward links with incoming connections makes it possible the quality and amount of transfer opportunities present at a particular airport. Other opportunities available for this market are from Brexit, which boosts it even if it fails to completely meet the risks adjusted revenues (Kroes &Savelberg 2019).

The challenges facing the UK aviation market are persistent and familiar. They include the cyclical characteristic of business, slow down of the international economy, fluctuations of fuel prices, technological factors, environmental factors, and slow liberalization rate. However, the primary threat to the UK aviation market is the volatility in the economic and geopolitical environment; several airlines possess a global footprint; hence they are prone to external factors like economic conjunctures and political tension (O'Connell &Connolly 2017).

Analyze and critically evaluate the importance of different factors that could influence the demand for air transport to/from Birmingham in the future.

In the previous few years, the research on air travel demand has achieved huge attention from several researchers, especially on the future trends and determinants of the air travel demands in Birmingham. The government has recognized the advantages of expanding air travel as it improves the lives of individuals and the economy of the UK. These factors have also opened up new windows for foreign trips for several people as offering rapid exposure to several modern businesses. The government of UK acknowledges that the establishment of more capacity to meet the demands of the consumers cannot be suitable and has instead laid down a balanced approach which recognizes the relevance of air travel to the UK and local economic success failure to which the economy and the success of the nation can be significantly damaged (Ryerson &Kim 2018).

It has also reduced demands for the development of new air...